Antofagasta Sees Profit Increase in 2023 but Cuts Dividend

Chilean mining giant Antofagasta has reported a 5% increase in its profit for 2023, buoyed by a rise in copper production and prices, which helped counterbalance soaring operational costs. The company's earnings before interest, tax, depreciation, and amortisation (EBITDA) climbed to $3.1 billion from $2.9 billion the previous year. Despite this growth, Antofagasta has significantly reduced its full-year dividend to shareholders to 36 cents a share, a sharp decline from the 59.7 cents distributed last year.

This reduction follows a period of generous shareholder payouts, including a record distribution of 142.5 cents per share in 2021, totaling $1.4 billion, during a year of particularly high copper prices and unprecedented profits for the company.

Antofagasta also disclosed a 13% increase in capital expenditure, amounting to $2.13 billion for the past year, primarily due to the expansion efforts at its Los Pelambres flagship mine. Looking ahead, the company projects its capital expenditure to reach $2.7 billion in 2024 as it embarks on the development of its Centinela concentrator.

The miner's 2023 copper production saw a 2% uptick, reaching 660,600 metric tons, driven by enhanced output at Los Pelambres. For 2024, Antofagasta maintains its production guidance within the range of 670,000 to 710,000 tons, signaling steady growth and operational optimization amidst fluctuating market conditions.